Pinault may jump into Suez deal

by David Teather

The French billionaire François Pinault headed into a political storm yesterday when he refused to rule out gatecrashing the planned €80bn (£54bn) merger of the utilities Suez and Gaz de France.

In a statement issued through his holding company Artemis, Mr Pinault said he had yet to decide on whether to bid for Suez but said "all options remain open". He was forced to make a public statement by the French markets regulator after widespread speculation about a possible bid gathered pace at the end of last week.

An infuriated Suez complained that the financier's intent was still unclear. The "vague and imprecise statement gives no clear indication of [Pinault's] intentions," it said. "For Suez shareholders it encourages speculation and brings about uncertainty." Suez asked the regulator to press for clarification under new takeover rules introduced last year. It is the first time the "put up or shut up" clause has been used.

The French government controversially brokered the merger between Suez and GDF almost a year ago. The deal to create a "national champion" was designed to fend off a proposed takeover approach for Suez from the Italian group Enel. But the Suez/GDF merger has been put on hold after the French constitutional court ruled that it could not go ahead until July 1, when the energy market is fully opened for competition. French presidential elections in May present further uncertainty as the Socialist candidate Ségolène Royal could renationalise energy assets if she wins. Mr Pinault wants hopes to buy Suez to dismantle it, according to reports.
Source: The Guardian

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